Most of the turnkey properties are more expensive due to the fact that they come in good condition and also they always have tenants. Investors who are long-term tend to buy turnkey properties in order to avoid challenges like rehabbing. The owner-occupants sometimes also choose to buy them after they move in. Turnkey real estate may include homes that have been newly constructed and the older homes which have gone through the renovation process. These turnkey properties have to pass through an inspection before they are sold out to the investors. The turnkey real estate guide on Roofstock takes you through the types, some of the advantages and limitations of purchasing a turnkey property.
What Are The Types Of Turnkey Properties?
All the turnkey properties should have several features like fresh paint, new flooring, or updated appliances. However, there are several types of turnkey properties that one has to consider. A turkey property may be in the form of:
- A single-family home
- A condominium
- Apartment building
- Multi-family unit
A condominium is a condo which already had all the renovations and is ready for a tenant to move in. The single-family homes are said to be turnkey properties if they are in the move-in condition. If an apartment building or a multi-family unit is considered to be a turnkey property, it is up to the code, it is livable and always has tenants who are qualified already renting the place.
What Are The Advantages?
Turnkey rentals are actually the investment properties which are ready for renting and one does not need to think of doing any repairs or renovations. This saves investors a lot of energy as well as money.
Turnkey properties are also very beneficial as you may begin to start renting out the property as soon as you have purchased it. This enables you to instantly begin making some money.
Most of the turnkey properties are accompanied by property management and they offer professional services. Even if these services come at a cost, they are able to save you from wasting too much effort and time.
Anyone, even people who have no experience in any real estate investment can buy the turnkey properties. This is because they are always ready for renting out and you don’t have to be involved in the property management.
Turnkey properties make out-of-state real estate investing easier. You are able to invest in turnkey property at any place because you never have to handle any repairs, fixes, maintenance or requests of the tenants.
What Are The Disadvantages?
Turnkey properties are more expensive because they provide professional property management services.
You are not able to make decisions on things like finishing, wall colour or the tiles on the floor.
You may be limited to very few options for purchasing a turnkey property due to the fact that you are searching for a certain kind of investment property. It is not in all the locations that you will find turnkey rentals being offered.
